Tía María is making progress on the 35% project, and Southern Peru is preparing the Los Chancas and Michiquillay projects to add nearly 500,000 tons of copper

Southern Peru is accelerating the development of its mining portfolio in the country with a strategy that combines the construction of Tía María, the optimization of its current operations, and the progressive advancement of new copper projects that will mark the company's next stage of growth in Peru.

One of the main focuses is Tía María, a project located in Arequipa that is already 351% complete. The initiative, valued at US$1.8 billion, is set to become one of the next copper operations to begin production within Southern’s portfolio.

Raúl Jacob, Vice President of Finance and Chief Financial Officer of Southern Peru Copper Corporation, explained that the company expects to complete the assembly and installation of main equipment for the project during the second half of next year.

“Our goal is to have the first production possibly towards the end of the third quarter or in the fourth quarter of 2027,” he stated during the Symposium – XVI International Mining Meeting, organized by the National Society of Mining, Petroleum and Energy (SNMPE).

Once operational, Tía María will have the capacity to produce around 120,000 tons of copper annually.

The project’s progress is also reflected in the level of financial commitments made by the mining company. Although the projected expenditure for this year exceeds US$1.45 billion, Southern already has contracts and purchase orders in place totaling approximately US$1.49 billion.

Jacob explained that the project is currently entering a new execution phase, associated with the acquisition of equipment and major contracts related to infrastructure and assembly.

At the same time, Southern continues to carry out clearing and mine preparation work. According to the executive, the mine development project is approximately 50% complete and is part of the activities necessary to prepare for the start of production at the deposit.

Regarding the permits required for construction, the company indicated that it is processing minor adjustments, although it assured that the overall project schedule remains aligned with the planned deadlines.

Beyond Tía María, Southern is also preparing the next generation of copper projects that will drive its growth in Peru over the next decade.

Among them are Los Chancas, located in Apurímac, and Michiquillay, in Cajamarca, initiatives that together could incorporate an additional 500,000 tons of copper into the company's production.

“Los Chancas would start production in 2031, with 110,000 tons of copper, and in 2032 Michiquillay, with 225,000 tons. Between the two, there will be almost 500,000 additional tons of copper,” Jacob projected in an interview with Gestión.

Both projects will require investments of approximately US$1.45 billion.

In the case of Los Chancas, Southern also highlighted the potential of its byproducts, especially molybdenum, a mineral used to increase the strength and durability of steel, which would improve the project's competitiveness and operating costs.

Regarding Michiquillay, Jacob confirmed that the recently completed drilling campaign yielded results aligned with the company's technical expectations, allowing for the continuation of the project's development.

As its growth portfolio advances, Southern also reports favorable operational results at its Cuajone and Toquepala mines, located in Moquegua and Tacna, respectively.

According to the company, both operations have shown better performance than initially expected, despite facing scenarios of lower copper grades during certain periods of the year.

Faced with this, Southern is evaluating alternatives to sustain production levels, including a possible expansion of Cuajone with a new operating line to compensate for future reductions in ore grade.

Jacob also maintained that the company maintains a strategy focused mainly on developing projects with full ownership control, although he did not rule out future partnerships depending on market opportunities.

With Tía María under construction and new projects advancing in parallel, Southern aims to consolidate sustained expansion of its copper production in Peru amidst growing global demand linked to the energy transition, electrification, and artificial intelligence.